The free cash flow for the firm is $92,000. The free cash flow can be calculated by subtracting the cash outflows from the cash inflows. In this case, the cash inflows include the sales revenue of $516,000, while the cash outflows include the cash dividends of $11,600.
The cost of goods sold of $308,000, the administrative expense of $23,200, the depreciation expense of $23,200, the interest expense of $46,400, and the purchase of productive equipment of $11,600.
To calculate the free cash flow, we need to subtract the cash outflows from the cash inflows:
Sales revenue: $516,000
Cash dividends: -$11,600
Cost of goods sold: -$308,000
Administrative expense: -$23,200
Depreciation expense: -$23,200
Interest expense: -$46,400
Purchase of productive equipment: -$11,600
Free cash flow = Sales revenue - Cash dividends - Cost of goods sold - Administrative expense - Depreciation expense - Interest expense - Purchase of productive equipment
Free cash flow = $516,000 - $11,600 - $308,000 - $23,200 - $23,200 - $46,400 - $11,600
Free cash flow = $92,000
Therefore, the free cash flow for the firm is $92,000.